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Originally published by Nation Counties
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February 10, 2026
1mo ago

Turkana oil row: Outrage over 85 per cent ‘investor friendly’ cost recovery

Turkana oil row: Outrage over 85 per cent ‘investor friendly’ cost recovery

Residents, ocal leaders raise alarm over deal that could deprive Kenyans of meaningful oil profits...

✨ Key Highlights

A proposed 85 per cent cost recovery cap for Turkana's oil blocks in the South Lokichar Basin has ignited significant outrage among Kenyan MPs and local elders. Critics fear this high cap will funnel nearly all early oil revenue to investors like Gulf Energy E&P B.V, leaving minimal benefits for Kenyans.

  • The proposed cost recovery cap has risen from 55 per cent for Block T6 and 65 per cent for Block T7 to 85 per cent.
  • Secretary of the Esanyanait Assembly, Mr. Julius Loyolo, argues that the current Production Sharing Contract (PSC) is a blueprint for a resource curse.
  • Nairobi Senator Edwin Sifuna predicts this could be the world's biggest scandal, suggesting Kenya might not see a single shilling of revenue.
  • The $6.1 billion South Lokichar project has struggled to secure strategic partners, with proponents arguing the higher cap is necessary to attract financing.
  • The proposed plans are currently under review by Parliament and must be approved before oil production can proceed.

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